If the Probability of a Bond Default Increases Because Corporations

question 108

Multiple Choice

If the probability of a bond default increases because corporations begin to suffer large losses,then the default risk on corporate bonds will ________ and the expected return on these bonds will ________,everything else held constant.

• A)decrease;increase
• B)decrease;decrease
• C)increase;increase
• D)increase;decrease

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Definitions:

GAISE

Guidelines for Assessment and Instruction in Statistics Education; provides recommendations for teaching statistics.

Statistical Software

Software specialized for statistical analysis, used by researchers and data analysts to perform complex calculations, data analysis, and visualization.

SAS Proficiency

The level of skill and knowledge in using the Statistical Analysis System (SAS) software, a tool for data management, advanced analytics, multivariate analysis, business intelligence, and predictive analytics.

GAISE

Guidelines for Assessment and Instruction in Statistics Education; it provides recommendations for statistics education at various educational levels.